AIM:ELA

Stock Analysis Report

Executive Summary

Eland Oil & Gas PLC, together with its subsidiaries, engages in development, exploration, and production of oil and gas properties in West Africa.


Snowflake Analysis

Solid track record with excellent balance sheet.

Share Price & News

How has Eland Oil & Gas's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: ELA's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

0.2%

ELA

12.6%

GB Oil and Gas

-2.2%

GB Market


1 Year Return

61.8%

ELA

-36.5%

GB Oil and Gas

-25.9%

GB Market

Return vs Industry: ELA exceeded the UK Oil and Gas industry which returned 4.5% over the past year.

Return vs Market: ELA exceeded the UK Market which returned 12.7% over the past year.


Shareholder returns

ELAIndustryMarket
7 Day0.2%12.6%-2.2%
30 Day7.0%-21.0%-20.3%
90 Day26.4%-35.9%-29.5%
1 Year62.7%61.8%-33.2%-36.5%-22.2%-25.9%
3 Year315.7%313.2%-14.4%-25.1%-16.1%-26.6%
5 Year140.0%138.6%1.4%-19.6%-4.6%-26.1%

Price Volatility Vs. Market

How volatile is Eland Oil & Gas's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Eland Oil & Gas undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ELA (£1.66) is trading below our estimate of fair value (£9.34)

Significantly Below Fair Value: ELA is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: ELA is good value based on its PE Ratio (6.9x) compared to the Oil and Gas industry average (7.6x).

PE vs Market: ELA is good value based on its PE Ratio (6.9x) compared to the UK market (18.5x).


Price to Earnings Growth Ratio

PEG Ratio: ELA's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: ELA is overvalued based on its PB Ratio (1.1x) compared to the GB Oil and Gas industry average (0.7x).


Next Steps

Future Growth

How is Eland Oil & Gas forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

-1.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ELA's earnings are forecast to decline over the next 3 years (-1.2% per year).

Earnings vs Market: ELA's earnings are forecast to decline over the next 3 years (-1.2% per year).

High Growth Earnings: ELA's earnings are forecast to decline over the next 3 years.

Revenue vs Market: ELA's revenue (28.8% per year) is forecast to grow faster than the UK market (3.6% per year).

High Growth Revenue: ELA's revenue (28.8% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if ELA's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Eland Oil & Gas performed over the past 5 years?

37.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ELA has a high level of non-cash earnings.

Growing Profit Margin: ELA's current net profit margins (33.4%) are higher than last year (16.1%).


Past Earnings Growth Analysis

Earnings Trend: ELA's earnings have grown significantly by 37.5% per year over the past 5 years.

Accelerating Growth: ELA's earnings growth over the past year (219.4%) exceeds its 5-year average (37.5% per year).

Earnings vs Industry: ELA earnings growth over the past year (219.4%) exceeded the Oil and Gas industry 24.4%.


Return on Equity

High ROE: ELA's Return on Equity (39.5%) is considered high.


Next Steps

Financial Health

How is Eland Oil & Gas's financial position?


Financial Position Analysis

Short Term Liabilities: ELA's short term assets ($130.0M) exceed its short term liabilities ($129.7M).

Long Term Liabilities: ELA's short term assets ($130.0M) exceed its long term liabilities ($75.2M).


Debt to Equity History and Analysis

Debt Level: ELA's debt to equity ratio (18.2%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if ELA's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: ELA's debt is well covered by operating cash flow (92%).

Interest Coverage: ELA's interest payments on its debt are well covered by EBIT (15.7x coverage).


Balance Sheet

Inventory Level: ELA has a high level of physical assets or inventory.

Debt Coverage by Assets: ELA's debt is covered by short term assets (assets are 2.1x debt).


Next Steps

Dividend

What is Eland Oil & Gas's current dividend yield, its reliability and sustainability?

1.12%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ELA's dividend (1.12%) isn’t notable compared to the bottom 25% of dividend payers in the UK market (1.83%).

High Dividend: ELA's dividend (1.12%) is low compared to the top 25% of dividend payers in the UK market (4.95%).


Stability and Growth of Payments

Stable Dividend: Too early to tell whether ELA's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if ELA's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (4%), ELA's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ELA's dividends in 3 years are forecast to be thoroughly covered by earnings (10.3% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.4yrs

Average management tenure


CEO

George Walter Maxwell (53yo)

5.25s

Tenure

US$937,000

Compensation

Mr. George Walter Mitchell Maxwell is the Founder of Eland Oil & Gas PLC and has been its Chief Executive Officer since September 8, 2014 and served as its Chief Financial Officer since September 28, 2009. ...


CEO Compensation Analysis

Compensation vs Market: George Walter's total compensation ($USD1.23M) is above average for companies of similar size in the UK market ($USD864.74K).

Compensation vs Earnings: George Walter's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
George Walter Maxwell
Founder5.25yrsUS$937.00k0.21% $737.6k
Ronald Bain
CFO & Executive Director2.33yrsUS$473.00k0.0081% $29.0k
Ian Blair
no datano datano data
Yannis Korakakis
Chief Operating Officer1.42yrsno datano data
Giel Krijger
Technical Directorno datano datano data
John Downey
Exploration Director0.75yrno datano data
Adebayo Ayorinde
Managing Director of Nigeria3.83yrsno datano data
Michael Cameron
Head of Financeno datano datano data
Ewan Neilson
Secretaryno datano datano data
Ruy Serra
Consultant2.42yrsno datano data

2.4yrs

Average Tenure

Experienced Management: ELA's management team is considered experienced (2.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
George Walter Maxwell
Founder5.25yrsUS$937.00k0.21% $737.6k
Ronald Bain
CFO & Executive Director2.33yrsUS$473.00k0.0081% $29.0k
Nicholas Gay
Non-Executive Director1.5yrsUS$25.00kno data
Brian O'Cathain
Non-Executive Director2.17yrsUS$47.00kno data
Henry Obi
Non-Executive Director3.42yrsUS$49.00kno data
Russell Harvey
Non-Executive Chairman4yrsUS$130.00k0.020% $71.1k
Grégory Stoupnitzky
Senior Independent Non-executive Directorno dataUS$49.00k0.012% $41.4k
Henry Arthur Turcan
Non-Executive Director4.92yrsUS$51.00k0.28% $1.0m

3.4yrs

Average Tenure

59yo

Average Age

Experienced Board: ELA's board of directors are considered experienced (3.4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: ELA insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Eland Oil & Gas PLC's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Eland Oil & Gas PLC
  • Ticker: ELA
  • Exchange: AIM
  • Founded: 2009
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Market Cap: UK£357.567m
  • Shares outstanding: 215.66m
  • Website: https://www.elandoilandgas.com

Number of Employees


Location

  • Eland Oil & Gas PLC
  • Seabrokers House
  • Prospect Road
  • Aberdeen
  • Aberdeenshire
  • AB32 6FE
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ELAAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPSep 2012

Biography

Eland Oil & Gas PLC, together with its subsidiaries, engages in development, exploration, and production of oil and gas properties in West Africa. The company primarily holds interests in the OML 40 license, which covers an area of 498 square kilometers located in the Niger Delta; and a 40% interest in the Ubima field that covers an area of 65 square kilometers located in the northern part of Rivers State. It also provides financing services. Eland Oil & Gas PLC was founded in 2009 and is headquartered in Aberdeen, the United Kingdom. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/18 21:43
End of Day Share Price2019/12/17 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.